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Party over for China's export miracle

What’s happened to China’s booming export market? Shrinking demand from the European Union and the U.S. are digging into one of China’s biggest money makers.

CHINA-TRADE -

6 billion

That's the dollar value of shoes made in China and exported to the US in the first half of this year alone.

That would put 120 million pairs of Converse Chuck Taylors in your closet.

Or, if you prefer stilettos - every imagineable pair of dancing shoes.

But the value of exports from China all added up -- shoes, clothes, vitamin pills, toys is dropping .

Growth in exports to the US has slowed sharply.

Shipments to countries in Europe are sinking like a stone as the economy sags.

HEAD OF RESEARCH, FUNG GLOBAL INSTITUTE, GENG XIAO, SAYING:

"This is very bad. This is so bad that you actually see both internal and external pressures and also indicates that there are no immediate solutions."

China's economic rise has been heavily dependent on making goods with cheap labor for export to the rest of the world.

Huge factories, a massive supply chain generating about a quarter of the country's GDP and about 200-million jobs.

But as Chinese grow richer, many no longer want to work long hours far away from home for little money.

Manufacturers are now seeking to move up the value chain - and shift more trade into the hands of its own population - building a consumption culture.

CEO, CCAM, MARK KONYN, SAYING:

"There's a transition going on very clearly because tremendous capacity had been built up as part of this export machine and the longer term or medium term ambition is to transform that capacity and instead of directing it purely for export, but to turn it in itself on the country and allow consumption to take off."

REUTERS REPORTER, TARA JOSEPH, SAYING:

"For now, shoes made in China are stepping on every street corner and pressing on every pavement around the globe. But as recent trends suggest, this may soon be out of style and China needs to find a new winning economic formula. Tara Joseph reporting for Reuters."